SOURCE: Evogene

Evogene

November 18, 2010 09:00 ET

Evogene Reports Third Quarter 2010 Financial Results

REHOVOT, ISRAEL--(Marketwire - November 18, 2010) - Evogene Ltd. (TASE: EVGN) announced today its financial results for the third quarter, ended September 30th, 2010.

Ofer Haviv, Evogene's president and CEO, stated: "During the past quarter, we continued to progress as planned under our current collaborations with world leading seed companies. In addition, in order to support these collaborations as well as prepare for anticipated future collaborations, significant efforts and investments were made in both improving and broadening our ATHLETE 3.0, RePack and EvoBreed genomic technologies, including their application to wheat as an additional target crop. Guiding these efforts is our focus on creating a complete and comprehensive solution for improving plant genetics, through the synergistic combination of 'state of the art' biotechnology and advanced breeding approaches."

Revenues for the first nine months of 2010 were $7.9 million, compared to $7.4 million for the same period in 2009. Revenues for both the third quarter of 2010 and of 2009 were $2.6 million. Revenues for all such periods consist substantially of research revenues generated under the company's various collaboration agreements with seed companies.

Research & Development expenses for the first nine months of 2010 were $3.7 million, including non-cash financial expenses of $0.7 million for amortization of deferred compensation. This compares with $1.5 million for the same period in 2009, including such non-cash financial expenses of $0.2 million. Research & Development expenses for the third quarter of 2010 were $1.5 million, including non-cash financial expenses of $0.4 million for amortization of deferred compensation. This compares with $0.7 million for the same period in 2009, including such non-cash financial expenses of $0.1 million. These increases in Research & Development expenses relate to the development of new genomic technologies, the establishment of genomic and breeding infrastructure for wheat, increased efforts related to additional traits and to support our biofuel program. Research & Development expenses do not include expenses incurred in support of on-going collaborations, which are accounted for as Cost of Revenues.

Loss from ordinary operations for the first nine months of 2010 was $2.1 million, including non-cash financial expenses of $1.7 million for amortization of deferred compensation. This compares to a profit from ordinary operations of $0.7 million for the same period in 2009, including such non-cash financial expenses of $0.6 million. Loss from ordinary operations for the third quarter of 2010 was $1.2 million, including non-cash financial expenses of $0.9 million for amortization of deferred compensation. This compares to a loss from ordinary operations of $0.1 million for the same period in 2009, including such non-cash financial expenses of $0.3 million. The increase in loss from ordinary operations for both the first nine months and third quarter periods of 2010 compared to 2009 is primarily due to the previously mentioned increases in Research & Development expenses and non-cash financial expenses.

Financial expenses due to publicly traded warrants: Evogene has approximately 4.5 million publicly traded warrants outstanding which were issued in 2007 as part of its IPO on the Tel Aviv Stock Exchange. Such warrants will expire if not previously exercised on May 31, 2011. Although not impacting the actual financial status of the Company or its cash balances, as long as these warrants are outstanding, any change as of the end of a reporting period in the market price of the Company's ordinary shares will result in non-cash financial income (expense) due to revaluation of warrants on our statements of comprehensive income and a corresponding decrease or increase in the non-cash liability related to traded warrants on our balance sheets.

Comprehensive loss for the first nine months of 2010 was $4.0 million, which includes $2.2 million of non-cash financial expenses due to publicly traded warrants, as described above, compared to a total comprehensive loss of $3.0 million, including $5.0 million of such non-cash financial expenses for the same period in 2009. Total comprehensive loss for the third quarter of 2010 was $3.6 million, which includes $3.1 million of such non-cash financial expenses, compared to a comprehensive profit of $2.1 million, which includes $1.3 million of such non-cash financial revenues for the same period in 2009.

As of September 30, 2010, Evogene had $35.9 million in cash, cash equivalents, cash deposits and short-term marketable securities, compared to $38.2 million as of December 31, 2009.

About Evogene

Evogene is a world leading developer of improved plant traits for the agriculture and biofuel industries through the use of plant genomics. The company's technology platform is based on a unique computational core technology for gene discovery, the ATHLETE 3.0, and high throughput systems for gene validation. Evogene's development programs focus on the improvement of high-commercial value plant traits, such as yield, biotic and a-biotic stresses tolerance and the improvement of plants specifically for biofuel uses. Evogene is collaborating with world leading seed companies in order to introduce its technology into key commercial crops. Evogene's headquarters are in Rehovot, Israel, and its stock is traded on the Tel Aviv Stock Exchange (TASE: EVGN). For additional information, please visit Evogene's website at www.evogene.com.

This press release contains "forward-looking statements." These statements include words like "may," "expects," "believes," "scheduled" and "intends," and they describe opinions about future events. These forward-looking statements involve known and unknown risks and uncertainties that may cause the actual results, performance or achievements of Evogene Ltd. to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements.

BALANCE SHEETS

Dollar in thousands
(except per share data)         As of
                             December 31          As of  September 30
                            --------------  ------------------------------
                                 2009           2010             2009
                               Audited        Unaudited       Unaudited
                            --------------  --------------  --------------

Current assets
Cash and cash equivalents           26,215          10,654          13,727
Short term bank deposits
 and marketable securities          12,024          25,218          25,290
Account receivables                    558             563             549
Other account receivables
 and prepaid expenses                  345             304             317
                            --------------  --------------  --------------
                                    39,142          36,739          39,883
                            --------------  --------------  --------------

Non-current assets
Prepaid expenses                        25              33              28
Property and equipment               3,440           3,709           3,254
Finance derivative                      57               -              47
Intangible assets                      217             183             228
                            --------------  --------------  --------------
                                     3,739           3,925           3,557
                            --------------  --------------  --------------

Total Assets                        42,881          40,664          43,440
                            ==============  ==============  ==============

Current liabilities
Current  maturities of
 other long-term
 liabilities                         4,082           4,138           4,010
Trade payable                          675             645             587
Liability related to traded
 warrants                                -           6,478               -
Other accounts payable and
 accruals                              999           1,354             949
                            --------------  --------------  --------------
                                     5,756          12,615           5,546
                            --------------  --------------  --------------



Long-term  Liabilities
Liability related to
 finance lease                         117               -             113
Liability related to traded
 warrants                            4,349               -           4,487
Liability related to chief
 scientists grants                   3,293           3,408           2,994
Deferred revenues                   10,018           7,154          11,071
Accrued severance pay, net               9               9               9
                            --------------  --------------  --------------
                                    17,786          10,571          18,674
                            --------------  --------------  --------------

  Shareholders' Equity
  Share capital                         80              81              80
  Premium on shares                 47,058          47,656          46,951
  Option Warrants                       72              72              72
  Other capital reserves             3,696           5,219           3,289
  PUT Option                        (4,433)         (4,433)         (4,433)
  Accumulated deficit              (27,134)        (31,117)        (26,739)
                            --------------  --------------  --------------
                                    19,339          17,478          19,220
                            --------------  --------------  --------------

Total  liabilities and
 shareholders' equity               42,881          40,664          43,440
                            ==============  ==============  ==============





STATEMENTS OF COMPREHENSIVE INCOME

Dollar in thousands (except per share data)



                      For the                           For the period of
                       Year       For the period of       three months
                     ended on   nine months ended on        ended on
                     ---------  --------------------  --------------------
                     December   September  September  September  September
                      31 2009    30 2010    30 2009    30 2010    30 2009
                      Audited   Unaudited  Unaudited  Unaudited  Unaudited
                     ---------  ---------  ---------  ---------  ---------

Revenues                 9,993      7,905      7,387      2,589      2,560

Cost of  revenues        4,962      4,213      3,642      1,486      1,361
                     ---------  ---------  ---------  ---------  ---------

Gross profit             5,031      3,692      3,745      1,103      1,199
                     ---------  ---------  ---------  ---------  ---------

Operating expenses:
 Research and
  development, net       2,569      3,691      1,524      1,499        741
 Business
  development
  expenses                 739        715        493        274        178
 General and
  administrative         1,457      1,375        981        506        393
                     ---------  ---------  ---------  ---------  ---------

Profit (Loss) from
 ordinary operation        266     (2,089)       747     (1,176)      (113)

Other (expenses)
 income                     54        (54)        54          -         54
Financial income         1,402        614      1,260        789        759
Financial expenses         (54)        (7)       (41)        (3)       (21)
Financial income
 (expenses) due to
 revaluation of
 warrants               (4,814)    (2,222)    (4,952)    (3,126)     1,314
Financial income
 (expenses) due to
 revaluation of
 Obligation to the
 OCS                      (217)      (225)       (36)      (109)       130
Share of losses of
 an associate
 company                   (46)         -        (46)         -          -
                     ---------  ---------  ---------  ---------  ---------

Net Profit (loss)       (3,409)    (3,983)    (3,014)    (3,625)     2,123
                     =========  =========  =========  =========  =========

Total Comprehensive
 income (loss)          (3,409)    (3,983)    (3,014)    (3,625)     2,123
                     =========  =========  =========  =========  =========

Basic profit (loss)
 per share (in dollar)   (0.13)     (0.14)     (0.11)     (0.12)      0.07
                     =========  =========  =========  =========  =========


Contact Information

  • Contact Information
    Evogene:
    Liat Cinamon
    PR & IR Executive
    E-mail: Email Contact
    Tel: +972-8-931-1933